Money Lessons For Those Living Paycheck To Paycheck

March 26, 2021 | Peyton Sawyer

money lessons

The majority of America living paycheck to paycheck amid pandemic is understandable – but unfortunate. What makes it even worse is that many of them could avoid it, if they’d learn a few simple money lessons beforehand.

Here are money lessons you need to learn if you’re still living paycheck to paycheck and when a Georgia auto pawn can be a possible option.

Money Lessons To Remember

1. You Need to Start Budgeting

No list of money lessons is complete without this one – and for a good reason! Budget is the ultimate money-management tool, the one that lets you take full control of your expenses.

A budget allows you to learn how to spend money mindfully – not deprive yourself, but ensure you get everything you need AND build financial stability.

2. Emergency Savings Should Be Your Priority

If you decide to ignore all money lessons but one on this list – then this is the one you should stick to. Having 3 to 6 months’ worth of expenses saved is a must if you wish to reach financial stability. People living paycheck to paycheck may not have trouble paying their bills but will have trouble handling a serious financial problem. An emergency fund is what will stop it from putting you in a money hole.

Save money for an emergency fund.

3. You Need to Live Within Your Means

If part of your paycheck isn’t going to savings or investments – you’re living above your means. This is probably one of the hardest money lessons you’ll learn.

At least 20% of your income should be going to your emergency fund or retirement. If you’re unable to comfortably save 1/5th of your income, you need to make some changes.

4. Affordable Substitutes That Get the Job Done Could Help a Lot with Saving Money

As budgeting goes, it may be among the most common money lessons, but it’s not very popular. This is because many view it as a deprivation tool.

The problem is, when you get used to something, it’s hard making changes. When you shop at Whole Foods, it’s hard to switch to Aldi’s, when you shop at malls, it’s hard to switch to thrifting. When you’ve taken out a loan for a new Jeep it’s hard to switch to a used cheap car.

But as money lessons go, this is the one that will make or break you – you need to change your lifestyle before you get financially stable. And that will require time.

You need to start planning your purchases not simply around what you want, but 1) what you need; 2) if you could get it cheaper.

5. You Need to Start Getting Ready for Retirement as Early as Possible

It doesn’t matter how young you are – unless you have a very serious reason, you should be saving for retirement.

(Serious reason includes emergency savings and early debt payoff).

And even if you have serious reason to put money towards other things, you should still, at the very least, use your 401k and fully match your employer’s contributions. Saying no to free money – for whatever reason – is just stupid.

6. You Need to Learn When to Take on Debt

As money lessons go, this is probably the most important (aside from the emergency savings one). Considering for most Americans, debt is the reason they’re living paycheck to paycheck, knowing which loans to take on – and when the situation calls for them, could play a major part in your wealth-building journey.

You should try to take the debt on when 1) it could potentially increase your net worth; 2) the situation cannot be handled without it.

In other words, you shouldn’t be leasing and overpaying for cars, or buying things on credit, if you can’t pay the card off.

Examples of good debt (i.e. if you don’t abuse and over-borrow them), are mortgage – to get a private property, business loan to start/expand your business, or auto pawns to handle emergencies.

auto pawns in Georgia

What Makes Auto Pawns an Option?

When you’re hit by an emergency that needs handling immediately (say a medical bill, a faulty lock, or clogged sink), it could be hard to get enough cash together to handle it before the problem gets worse (and more costly).

This is why you should have an emergency fund in the first place. But if you don’t have one, then auto pawns could easily help, due to being accessible and fast. You can get approved even if your credit is bad or nonexistent, and all kinds of income can be accommodated.

And, if approved, you’ll get the cash the same day.

How Do I Apply for Georgia Auto Pawns?

To apply for auto pawns, you need to be over 18, own a car, and have that car’s title be in your name and lien-free. It’s pretty straightforward from there:

  1. Go to the website homepage and fill out the online form;
  2. Wait for the loan representative to contact you and set up an appointment;
  3. Take your car, your car title, and your government-issued ID to the appointment, for the loan representative to assess everything and determine if you qualify for the car title loan;
  4. Get approved and get the cash!

Follow our money lessons when learning how to not live paycheck to paycheck. And if you need to find a helping hand along the way, you have Georgia Auto Pawn, Inc. to provide the extra title pawn cash you need.